Comment Text:
Dear Chairman and Commissioners,
My name is Ethan Conner, and I'm a technology leader based in Georgia. Im writing to share my thoughts on the Advance Notice of Proposed Rulemaking on Prediction Markets (91 FR 12516). As someone who actively trades on regulated platforms like Kalshi, I strongly support the CFTC crafting proportionate regulations for prediction markets rather than imposing heavy restrictions or outright bans. I believe these markets provide real value, and I want to explain why I think they deserve a fair regulatory framework.
As a tech professional, I see prediction markets as a powerful tool for aggregating information and producing insights you cant find anywhere else. Ive traded on contracts tied to economic indicators and political events, and the prices often reflect a clearer picture than polls or media speculation. This isnt just helpful for traders like me; its useful for anyone who needs to understand whats likely to happen, from businesses to regular folks making plans. I also reject the idea that this is gambling. Trading on Kalshi requires research and judgment, much like any other investment. Labeling it as "gaming" feels like a misstep when it serves legitimate economic purposes like price discovery.
Im particularly concerned about maintaining freedom to participate in legal, regulated markets. Platforms like Kalshi, under CFTC oversight, are transparent and accountable. If we over-regulate or ban these markets, people will just turn to unregulated offshore alternatives, which are far riskier for consumers. Ive seen enough sketchy platforms in my tech career to know that pushing activity underground doesnt solve problems; it creates them. Regulation, not restriction, is the way to protect users. On a related note, I believe the US should be leading in financial innovation. If we stifle prediction markets, were handing the advantage to other countries who will happily fill the gap. We cant afford to fall behind in a space where technology and finance intersect.
Id also like to address a few of the specific questions in the ANPR. On Question 7, regarding balancing innovation and consumer protection, I think regulated markets already strike that balance by providing safeguards while allowing participation. On Question 29, about informed trading, I believe traders with better information actually improve price accuracy, which benefits everyone in the market, not just themselves. The CFTC already has tools to tackle insider trading or manipulation, so the focus should be on enforcement, not broad prohibitions.
I appreciate the CFTC taking public input on this issue, and I urge you to support a regulatory approach that allows prediction markets to thrive under clear, fair rules. Dont let overblown fears of misuse punish those of us who use these markets responsibly. Thank you for considering my perspective.
Sincerely,
Ethan Conner
